Question: . a . A zero - coupon bond pays $ 1 0 0 0 i n six years. i What i s the value o

.a. A zero-coupon bond pays $1000in six years.
i What is the value of the bond today? The nominal interest rate iis4%.
ii Price the bond if the interest rate is now 14%.
iii Describe the relationship between the interest rate and the bond price.

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